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Breakingviews: Russia’s siege economy

Sept. 17 - Shares in Russia's Sistema tumble, following its chairman's arrest. But it could show Russia is back to a siege economy, says Reuters Breakingviews.

TRANSCRIPT +

The chairman -- sustained by the Russian financial holding companies been placed under house arrest. That being comparisons. With you cross here there's also a link to sanctions and Ross Jeff's name is mentioned. As some are in this as well put it all together is yet we have so there's been I'm writing about is this morning. The -- but lying you take is is this this illustrates that brochures -- -- -- economy. Yes what does that mean. Well it they're back to the old authoritarian model of -- -- a -- of managing the economy did do it from -- in the economy has been pretty liberal. Under pretend. Where -- -- decent to 23 years ago. That way things to be who knew where not to do -- -- -- medal except through the indirect way of corrupt judges prosecutors and local officials. Which was. -- the cost of doing business if you want what's happening now it seems to me what do we have here we have been. And -- -- they -- of government would have enjoyed oligarchy. We've put into -- hey hey I imagine due process because apparently attack. This one by the way has nothing to do with politics and -- that have -- -- that type games that you Chris. It was purely political in this case. All the stories you see you read about him before today where. The Kremlin friendly. Cruised to pretend that got the Kremlin friendly. Companies to -- my -- financial holding companies which has. Among golfers. Booms passionate when of the last remaining private boat companies in Russia. And be Malaysian open and to and to get. So what happens he's put under arrest for house arrest so it's not two but so far for alleged that -- money laundering. Above the -- he -- in god or company he controls has been controlling 75% of it. Since 2009 it's kind of been delayed. A weakening by prosecutors. Realizing that so there might be proud. Yeah has never denied that he may have had. Back a long time ago. Skeletons that he's do you. And not having to open the content. But. Which we know -- who has thrust it is interested in his assets and -- company. Why because of sanctions have hit the cut the resident of the Israelis and -- you have to in particular. Cut from where some financing having three billion of debt to refinance by the next year -- news dollars. Obliged to force to top the Russian government to ask the -- 440 billion dollars to make ends meet. Cut off from Russia western technology. To explore the new politics and how to get to -- -- in the Arctic. And rustic and a botched -- the company they won't by the way it has part of the technology to -- about. I mean if you put all things to get very pretty much see that. You kind of grew by. Exploring new loan fees to kind of grow by acquiring things decade house -- to. Property -- lateness to the mystery that remains to these -- used the Russian government to kind of forcing this makes sense this is what the Honda folks -- -- the concept. OK and you can use you made the building -- -- sanctions Ross after being in a bind because of the sanctions count we expect. More this to happen or definitely not as a result of the sanctions as a result of big companies that -- he's being put in about. As -- as aggressive externally and militarily as the Russian economy is slowly cruising down. And so it's -- who resorting to back to the old authoritarian grip and authoritarian. Ways to manage an economy. We see to -- is. Embargoes and bands on the west and product which was president. You -- seat pressure on the Russian Central Bank to kind of be you know accommodating and so did this to boost inflation using pressure. On Russian yeah he used she's got more and more on this is the trend that we let not and anytime soon. Going to appear many things about you can read PSP's. On the breaking news. Website. The US shares at 12:30 eastern sentencing that he BST IMAX Acropolis is rice's.

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